Exit Polls: Markets soar in early trade; Sensex zooms 942 points

Mumbai: Domestic financial markets cheered exit poll results that showed ruling NDA is likely to win the general Lok Sabha elections on Monday, with the benchmark BSE Sensex skyrocketing over 900 points, and the rupee appreciating 79 paise against the US dollar.

After soaring over 962 in early session, the 30-share index pared some gains and was trading 687.63 points, or 1.81 per cent, higher at 38,618.40.

In similar movement, the broader NSE Nifty was trading 203.05 points, or 1.78 per cent, up at 11,610.20.

On the other hand, Bajaj Auto, Infosys and HCL Tech slipped up to 2 per cent.

Most exit polls Sunday forecast another term for Prime Minister Narendra Modi, with some of them projecting that BJP-led NDA will get more than 300 seats to comfortably cross the majority mark of 272 in the Lok Sabha.

The results of the seven-phase polls will come out Thursday.

"The exit polls have been better than market expectations, with the ruling party getting a comfortable majority. The market is likely to rally further, but the rally may not be significant as there are challenges of not so encouraging earnings growth, lower liquidity, slowing economy and global challenges," said Naveen Kulkarni, Head of Research, Reliance Securities.

There could be sector-specific rally. Infrastructure and banking stocks could do well, he added.

Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.